The News Minute | April 9, 2015 | 08:55 am IST US e-commerce giant Amazon on Wednesday chose Telangana over Karnataka to set up its fulfilment centre (FC), states a report by The New Indian Express. The firm has put its decision to invest in Karnataka, where it has an FC and its head-office, on hold till the taxation issues it is facing in the state are settled. According to the report, the state government was firm on not waiving VAT. The report quotes an Amazon India spokesperson as saying, "We understand the situation to be a case where the laws have not kept pace with the new-age online business models that enable a faster, convenient and nationwide access to customers for sellers, especially small and medium businesses, at significantly low costs. We do look forward to a resolution at the earliest."Last year, Amazon had announced that it planned to invest $2 billion in India. Speaking on the issue, Chief Minister Siddaramaiah said "Karnataka has one of the best investment environments in the country. It (Amazon) will not leave the state," adds the report.